Privatisation Can Mitigate Greek Debt Crisis

Alan Meltzer on privatisation as a partial solution to Greek debt problems:

Much of Greece’s industry and commerce, including much of the tourist industry, is owned by the state. It should be sold with the proceeds used to reduce public debt. That would make the remainder of the debt more sustainable and transfer workers to the private sector where competitive pressures for lower wages and increased productivity would more closely align employment costs and reality. If the socialist government returned more of the economy to the private sector, Greece would have a better chance of economic recovery.

posted on 21 May 2010 by skirchner in Economics, Financial Markets, Fiscal Policy

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